THE WOODFORD PRODUCT RANGE AT A GLANCE

Transcription

1 THE WOODFORD PRODUCT RANGE AT A GLANCE

2 AT WOODFORD, WE RE KEEN THAT INVESTORS UNDERSTAND THEIR INVESTMENTS AND HOW THEY ARE MANAGED. WE WANT TO ENSURE THE RIGHT PEOPLE INVEST IN THE RIGHT FUNDS FOR THE RIGHT REASONS, MAKING INFORMED INVESTMENT DECISIONS BASED ON WHAT S RIGHT FOR THEM. WE OFFER THREE FUNDS ALL MANAGED BY NEIL WOODFORD. THE PURPOSE OF THIS DOCUMENT IS TO EXPLAIN THE KEY DIFFERENCES BETWEEN THE FUNDS AND HELP YOU DECIDE WHETHER ANY OF THEM ARE SUITABLE FOR YOU. Investment objective To provide a high level of income* together with capital growth. * The fund manager will aim to deliver an income of 5p per share per annum. Investors should be aware that there is no guarantee that any specific level of dividend or yield will be achieved over any given time period. To provide a reasonable level of income together with capital growth. To achieve long-term capital growth through investing in a portfolio consisting predominantly of UK companies, both quoted and unquoted. Fund / trust manager Fund / trust sector Benchmark Long-term annualised return expectation IA Specialist FTSE All Share Index High single-digit (with a significant proportion of total return derived from income) IA UK Equity Income FTSE All Share Index High single-digit (with a lower proportion of total return derived from income) AIC UK All Companies None Double digit (none of which will necessarily be derived from income)

3 Specific product risks The annual management charge is charged to capital, so the income of the fund may be higher but capital growth may be restricted or capital may be eroded. The fund may from time to time be invested in a concentrated portfolio of securities. The fund may invest in overseas securities and be exposed to currencies other than pound sterling. The annual management charge is charged to capital, so the income of the fund may be higher but capital growth may be restricted or capital may be eroded. The fund may invest in illiquid assets which may be more diffcult to buy or sell and their prices may also be subject to large short term swings. The fund may invest in overseas securities and be exposed to currencies other than pound sterling. The price of shares in the trust is determined by market supply and demand and this may be different to the net asset value of the trust. Young businesses have a different risk profile to mature blue-chip companies risks are much more stock-specific, which implies a lower correlation with equity markets and the wider economy (this may offer diversification benefits); long-term outcomes are more binary extremely attractive rewards for success but some businesses will inevitably fail to fulfil their potential and this may expose investors to the risk of capital losses (we aim to mitigate this risk through rigorous analysis of the opportunity, an unwavering focus on valuation and diversification across a larger number of smaller positions); this investment requires patience (it can take years for young businesses to fulfil their potential). Product type Inception Distribution frequency XD dates Year end Pricing frequency Share classes Fees UCITS (UK) 20 March 2017 Quarterly 1 February, 1 May, 1 August and 1 November 31 January (interim 31 July) Daily A, C, X, Z Acc & Inc We have worked hard to keep our costs low and have simplified our pricing structure by absorbing fund related expenses into our fund s annual management charge (AMC). The fund has four different share classes, each of which is priced based on commercial terms, with everyone treated consistently: A Inc & Acc no initial fee; 1.00% AMC; 1.00% OCF; no exit fee C Inc & Acc no initial fee; 0.75% AMC; 0.75% OCF; no exit fee Z Inc & Acc no initial fee; 0.65% AMC; 0.65% OCF; no exit fee X Inc & Acc no initial fee; 1.50% AMC; 1.50% OCF; no exit fee UCITS (UK) 2 June 2014 Quarterly 1 January, 1 April, 1 July and 1 October 31 December (interim 30 June) Daily A, C, X, Z Acc & Inc We have worked hard to keep our costs low and have simplified our pricing structure by absorbing fund related expenses into our fund s annual management charge (AMC). The fund has four different share classes, each of which is priced based on commercial terms, with everyone treated consistently: A Inc & Acc no initial fee; 1.00% AMC; 1.00% OCF; no exit fee C Inc & Acc no initial fee; 0.75% AMC; 0.75% OCF; no exit fee Z Inc & Acc no initial fee; 0.65% AMC; 0.65% OCF; no exit fee X Inc & Acc no initial fee; 1.50% AMC; 1.50% OCF; no exit fee Investment trust (plc) 21 April December (interim 30 June) Daily NAV Ordinary shares only (WPCT) Woodford will not receive an annual management fee. A performance fee equal to 15% of any excess returns over a 10% per annum cumulative hurdle rate, subject to a high water mark. Ongoing annual expenses not expected to exceed 0.2% per annum.

4 Gearing policy Geographic exposure Exposure to unquoted securities Income objective Available in an ISA? Who might the fund be suitable for? Each share class has a specific purpose. The fund s C, X and Z share classes are available to fund platforms and intermediaries that wish to offer our fund to their clients and have agreed terms of business with us. The A share class is intended for those direct investors who are not tempted by the lower fees available to supporting platforms and intermediaries. It has a high minimum investment of 150,000 because we are a fund manager not a fund distributor. No restrictions None * The fund manager will aim to deliver an income of 5p per share per annum. Investors should be aware that there is no guarantee that any specific level of dividend or yield will be achieved over any given time period. the risks and merits of the fund Investors looking for long-term investment growth and with a minimum investment horizon of 3-5 years (and comfortable that although the funds can be withdrawn at any time, instant access could mean having to Each share class has a specific purpose. The fund s C, X and Z share classes are available to fund platforms and intermediaries that wish to offer our fund to their clients and have agreed terms of business with us. The A share class is intended for those direct investors who are not tempted by the lower fees available to supporting platforms and intermediaries. It has a high minimum investment of 150,000 because we are a fund manager not a fund distributor. > 80% UK Up to 10% Current yield 3.4% (as at 31 December 2016) the risks and merits of the fund Investors looking for long-term investment growth and with a minimum investment horizon of 3-5 years (and comfortable that although the funds can be withdrawn at any time, instant access could mean having to withdraw at a time which is not optimal from The trust may employ gearing of up to 20% of net asset value for capital flexibility but does not intend to deploy long-term gearing > 70% invested in companies traded on the London Stock Exchange or incorporated in the UK Up to 60% - strategy focused on long-term capital growth so significant dividends are unlikely the risks and merits of the trust (in particular the specific risks associated with investment in early-stage and early-growth companies) Looking for long-term (5 years+) investment growth Not seeking regular income from this investment

5 Who is the fund not suitable for? withdraw at a time which is not optimal from a market / fund performance perspective) Investing for income but clear that a high, sustainable level of income is a priority of the fund managers Comfortable that the value of investments in the fund can go down as well as up, that capital may be at risk and that performance varies over time and returns are not guaranteed. when the fund falls in value (it may be more volatile in the short term than other Woodford funds as a higher exposure to quoted securities means it will be more significantly impacted by general market volatility) investment horizon of less than 3-5 years). a market / fund performance perspective) Investing for income but clear that a healthy, sustainable level of income is a priority of the fund managers Comfortable that the value of investments in the fund can go down as well as up, that capital may be at risk and that performance varies over time and returns are not guaranteed. when the fund falls in value Investors who do not wish to be exposed to unquoted securities. investment horizon of less than 3-5 years). Comfortable accepting that the value of investments in the trust can go down as well as up, that capital may be at risk and that performance varies over time (and share price is dependent on normal market forces of supply and demand rather than just the trust s underlying NAV) and returns are not guaranteed. when the fund falls in value investment horizon of less than 5 years. Important information The value of investments and the income from them may go down as well as up, so you may get back less than you invested. Past performance is not a guide to future returns Before investing, you should read the Key Investor Information Document (KIID) for each fund and the Prospectus which, along with our terms and conditions, can be obtained from our website at woodfordfunds.com or from our registered offce. If you have a financial adviser, you should seek their advice before investing. Woodford Investment Management Ltd is not authorised to provide investment advice. To get in touch with our team or to find out more about our funds just call, us or visit our website woodfordfunds.com Woodford Investment Management Ltd is authorised and regulated by the Financial Conduct Authority. The registered offce is 9400 Garsington Road, Oxford OX4 2HN woodfordfunds.com EC-2403